The DAX Index Opens 0.24% Lower

The DAX 40 extended initial losses on the first trading day of September, falling more than 1% to around 25,980, a level last seen in late July. Rising oil prices and bond yields amid intensifying Middle East hostilities are weighing on markets worldwide, as concerns over renewed inflation fuel expectations of interest-rate hikes. Eurozone inflation climbed to 3.3% in August, its highest since September 2023, marking a second straight monthly increase and reinforcing expectations of a tighter ECB policy stance. Most sectors traded lower, with the exception of utilities and chemical companies. MTU Aero Engines led losses among stocks, down 2.7%, followed by SAP, Deutsche Bank, BMW, Mercedes-Benz Group, Rheinmetall, Volkswagen and Vonovia, down over 2% each. Merck topped the gainers, up 1.6% after a buy recommendation from HSBC. Symrise advanced 1.4%, buoyed by a buy call from Jefferies and news about the planned sale of its US terpene business to Mutares.

The DAX 40 fell 0.4% to around 26,140 on Tuesday, the lowest since August 24, as September began with investors wary that a prolonged US-Iran conflict could fuel energy-driven inflation and prompt tighter monetary policy. Oil prices and global bond yields continued to rise on the back of flared-up hostilities in the Middle East, with traders increasingly pricing in interest rate hikes by the ECB and the US Federal Reserve. By sector, energy-sensitive industrials, banks and autos were the hardest hit, while gains in pharma stocks, chipmakers, chemical companies and utilities helped cushion the losses. Software giant SAP led losses among stocks, slipping 2.5%. Rheinmetall, MTU Aero Engines, Scout 24, BMW, Mercedes-Benz Group and Volkswagen posted losses between 0.8%-2.1%. Deutsche Bank and Commerzbank fell more than 1% each. On the upside, Merck (2.3%), RWE (1.5%) and Symrise (1.5%) were the top performers.

The DAX Index is losing 62 points. Losses were led by SAP (-2.45%), Rheinmetall (-2.31%) and MTU Aero Engines AG (-1.62%). Offsetting the fall, top gainers were Merck (2.52%), Infineon (2.13%) and Symrise (1.96%).